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janiceroberts
New Member

If I take out a loan against my 401K for 20,000$, and then leave the company I am with, and choose to keep the loan instead of paying back, how much would I owe in taxes?

 
1 Reply
Bsch4477
Level 15

If I take out a loan against my 401K for 20,000$, and then leave the company I am with, and choose to keep the loan instead of paying back, how much would I owe in taxes?

That amount would be income and taxed at your tax rate plus you would have a 10% early withdrawal penalty on that amount.

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